Dangote Sugar Refi nery has recorded revenue of N118 .676 billion for the half year fi nancial result. Th is represents an increase of N48.205 billion or 95.82 per cent from N70.471billion reported in the preceding year. Th e rise in revenue derived from the sale of refi ned sugar in 50kg bags; just as the Lagos regional market accounted for N55.934 billion of the sales, followed by the North- N41.927 billion, West, N14.456 billion and N6.357 billion from the Eastern part A further breakdown of the result showrd that “there is a single customer who buys industrial nonfortifi ed sugar that represents more than 10 per cent of total sales during the year,” just as there are large corporates, including manufacturers of confectioneries and soft drinks, which it noted, typically accounts for 30 per cent of its sales revenue.
Th e net profi t soared by 131.68 per cent, on the back of a 68.4 per cent growth in sales revenue, with the company becoming the fi rst to off er an interim dividend in this fi nancial year. Th e directors are off ering 50 kobo for every 50 kobo share held by investors. However, the Cost of sales also grew to N91.786 billion, representing an increase of about N35.233 billion or 62.3 per cent from the previous N56.553 billion; the lion’s share- N76.324 billion, up from N47.664 bilion of which went into raw materials; following which gross profi t stood at N26.89 billion, as against the N13.918 billion reported in the 2016 halfyear.
Selling and distribution expenses for the period stood at N411.147milliin, from N488.233 million recorded the previous year; administrative expenses was also curtailed at N2.993 billion from N2.26 billion, leaving operating profi t at N23.613 billion, a rise from N11.286 billion in the prior half year. Investment income for the period increased from just N126.382 milliin to N1.658 billion, fair value adjustment was positive at N283.92 million from a negative of N7.533 million. Finance costs rose to N30.1457million, from N249.291million, as profi t before tax climbed to N25.253 billion from N11.155 billion. Th e impressive growth in net profi t was also despite the N4.378bn or 116 per cent rise in income tax expense, which left net profi t for the period at N17.101 billion, representing a N9.72 billion n growth from N7.381bn, which translated to 285 kobo earnings per share, as against the previous 123 kobo each.